State-run NLC India (formerly Neyveli Lignite) has lined up large capacity expansion plans in thermal and renewable power, battery storage and coal gasification, while also seeking growth in conventional areas like coal and lignite mining, Chairman & Managing Director (CMD) M Prasanna Kumar told FE.
The company is hopeful of starting to generate green hydrogen by the next financial year, and putting on stream the coal gasification unit in FY27.
The total investments for these projects are estimated at Rs 82,700 crores, of which Rs 22,000 crores will be invested in the RE sector.
It will set up more than 1 giga watt (GW) of renewable energy power capacities in Rajasthan and Gujarat in the financial year 2024-25. These projects are part of an ambitious plan to achieve 6 GW renewable energy (RE) capacity target by 2030. The company also plans to add 11 GW capacity in its thermal power plants by the same period.
The company has planned to add 100 MW of RE capacity at Rajasthan and has completed adding 10 MW capacity at Neyveli. “This financial year 110 megawatt will be installed, but in the next financial year, we will be adding more than 1000 megawatt capacity both in Rajasthan as well as Gujarat,” Kumar said.
The company also intends to expand its floating solar projects to the water bodies around Neyveli area and other power houses in the next four to five years in order to expand its portfolio in the RE sector. “Currently, we have 2 GW of RE capacity under construction and 1.4 GW in operation,” Kumar said.
NLC is also planning to add 1.5 GW of RE capacity at Neyveli, Talabira, and Ghatampur in collaboration with the government of Uttar Pradesh under the bundling scheme. “We are adding 3×660 MW capacity (under the bundling scheme). The first unit is expected to be commissioned in the month of November,” Kumar said. Under the bundling scheme, renewable energy and thermal power is sold in a bundle so that end users can get uninterrupted power supply.
Among other targets of NLC, is the target of expanding its lignite and coal mining capacity to 84 million metric tonne as against the current capacity of 50 million metric tonne. “The Pachhwara coal block is in the advanced stage of production and we are expecting production of 9 million metric tonne (lignite and coal capacity) by March next year.”
The company has been exceeding its target of coal capacity. However, it seems to face some problem in fulfilling its lignite based power targets. The company’s Q1 and Q2 performance in terms of lignite production and lignite-based power generation have been less than the targeted.
“Out of 10MW capacity, 4MW capacity is earmarked for utilisation in the pilot scale Green Hydrogen project to be established at Neyveli.”
“NLC India wishes to increase the battery energy storage system from its present 8 MWhr capacity. Considering the envisaged BESS capacity in the optimal energy mix report 2030 of Central Electricity Authority, the grid connected BESS concept is under active consideration,” Kumar said.
The company expects its profit to increase this year as it gears up to start the operations in its Gathampur power station. Last year, NLC reported a standalone net profit of Rs 1,250 crore whereas at the consolidated level, the profit was reported at Rs 1,400 crore.